What's a Short Sale?

Short Sale

A short sale is a program that is offered by a bank that helps release the borrower from their debt. A short sale represents a solution for a homeowner who cannot pay his mortgage and wants to walk away from the property without destroying his or her credit and financial profile through a foreclosure or bankruptcy. The reason why the banks do this kind of sell rather than foreclosing is because the banks want to save time and money. The banks don’t want to spend time fixing up the property to get it ready for auction. A quick sale to another buyer is faster for the bank.

For a short sale to take place, you need to have a few things ready:

• A property owner that is willing to sell the property
• A contract offer to buy the property
• Value and costs associated with sale of property
• Total of loans against the house
• Legal assistance
• Accountant
• Contact the lenders
• Proof the seller is incapable of paying the mortgage
• Short sale package from the bank